Tax Compliance Measures in Jamaica

Tax Administration Jamaica implements Revenue Enhancement & Arrears Project (REAP)

Tax Administration Jamaica (TAJ) has implemented a Revenue Enhancement & Arrears Project (REAP), designed to broaden the tax base, improve revenue inflows and update its Integrated Computerised Tax Administration System (ICTAS) database.

REAP has been developed as part of an expanded and sustained PAYE audit programme which will target employers who:

• Deduct taxes from employees’ emoluments but fail to remit this to the government.
• Deduct the incorrect amount of payroll taxes
• Fail to file PAYE returns.
• Are not registered as employers but should be. 

In addition to employers, REAP will also focus on examining the financial records and business activities of wholesalers and traders, identified through the administration’s Forensic Data-mining Intelligence Unit (FDIU).  Data analysed by the FDIU suggests tax evasion on the part of persons in the cash economy across several sectors, which keep little records and accept cash as the only payment method.  It has therefore determined that special attention needs to be paid to these sectors.

 

In addition to the main effort of the project, a Taxpayer Registration Drive and island wide Street Surveys will be conducted. Officers designated ‘Tax Inspectors’ will visit businesses, at times unannounced, to observe activities, check available documents and records, and register unregistered taxpayers. This strategy is intended to widen the tax net, promote equity and fairness in the system thus improving revenue collection. 

REAP is a special initiative under the tax administration’s three (3) year National Compliance Programme, and will be a main focus of TAJ for the remainder of the 2011 – 2012 financial year, as we continue to make significant progress with the reform exercise, implement effective and relevant compliance strategies.